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Assuming the structure of the current economic system follows some kind of inevitable (natural?) law is part of why you are unable to reason beyond the logic of
by uoaei 3y ago
Assuming the structure of the current economic system follows some kind of inevitable (natural?) law is part of why you are unable to reason beyond the logic of the markets we contend with today.
Markets have taken many different forms, have been entrusted with different sets of responsibilities to different degrees, over the course of economic history.
Perhaps it makes more sense now to develop a fiscal institution to run insurance than to continue to rely on a market-based solution.
- pseg134 3y agoWell since your are the one proposing changes, what makes you think that a “fiscal institution” (whatever that is) would be more effective than the current market based solution. Don’t mention your feelings for extra credit.
- whalesalad 3y agoNothing in life is free. There must be balance. Regardless of whether an insurance company is public or private these bedrock issues of “can we remain in the black?” will remain. A “fiscal institution” that is losing money on claims will fail. Plain and simple.
- uoaei 3y agoAccounting is different when you're a government that issues its own currency. There is no such thing as losing "money" when such conditions exist. I didn't recognize the difference between fiscal and monetary policy until I appreciated this fact -- maybe it will help you too. The perspective then changes to losing domestic economic activity, which would surely occur if lives are ruined because their assets are destroyed before preparations have been made or eventualities prevented.